Fill and Sign the Agreement for Direct Payment of Taxes Assessments Form

Agreement for Direct Payment of Taxes, Assessments, and/or Insurance and Waiver of Escrow to be held by Lender Agreement made on the _________________ (date), between ____________________ (Name of Borrower) of _________________________________________________________ __________________ (street address, city, county, state, zip code), referred to herein as Borrower, and _________________________ (Name of Lender), a corporation organized and existing under the laws of the state of ___________________, with its principal office located at ____________________________________________________________________________ (street address, city, county, state, zip code), referred to herein as Lender.Re: Loan Number: ________________________________________________.Property Address which is collateral for Loan: _________________________________________________________________________For and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Lender hereby agrees to waive the property taxes, special assessments, if applicable, and insurance escrow on the subject account. In consideration for this privilege, the Lender may charge a fee equal to .25% of the initial loan amount payable by the Borrower at the time of loan closing. Borrower understands and agrees that it is his obligation as the Borrower to:A. Pay all property taxes in full each year before interest and penalty attaches, with the understanding that within _____days after the due date, Lender will verify with the local Assessor’s that all taxes and assessments have been paid in full.B. Instruct Borrower’s Insurance Agent to annually provide the Lender with a copy of our current hazard insurance policy, and flood insurance, if applicable, showing that the subject property is insured in accordance with the guidelines provided by the Lender and that all premiums have been paid in full.2. Borrower hereby acknowledges this agreement, and fully understands the following consequences if he fails to comply with this agreement:A. Lender is authorized to immediately require Borrower to establish an escrow account, including payment of required initial escrow deposit, for payment of all future property taxes, assessments hazard and flood insurance premiums and any other required disbursements from escrow.B. Lender will obtain an insurance policy from vendor of its choice at a potentially higher cost and may also result in reduced coverage than the previous policy.C.The current monthly payment made by the Borrower will be increased to cover the monthly escrow payment and the Lender will not accept monthly mortgage payments on this account until such time as the initial required escrow deposit has been paid. 3.Borrower understands and agrees that once an escrow account is required it cannot be waived, and it must remain in effect throughout the entire term of the mortgage.4. In this agreement, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine.WITNESS our signatures as of the day and date first above stated. _____________________________ (Name of Lender) ________________________ By: __________________________________ (Printed name) __________________________________________________ (Printed name & Office in Corporation) (Signature of Borrower) __________________________ (Signature of Officer)